SIBERIA the TRANSNATIONAL CORPORATION? Urban Theory Lab: Operational Landscapes of Planetary Urbanization
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Hernán Bianchi Benguria + Amanda Miller IS SIBERIA THE TRANSNATIONAL CORPORATION? Urban Theory Lab: Operational Landscapes of Planetary Urbanization A series of industrialization waves, driven by sociopolitical concerns and State policies—from prison camps, to Soviet socialism, and then mass privatiza- tion—created a framework for the present-day Siberian urbanization process. The case of Norilsk Nickel, a copper, nickel and platinum-based mining mega- Siberia — Russia’s hinterland — historically complex in northern Siberia, is representative of the monoindustrial corporate strategy within the post-Soviet backdrop of oligarchic monopoly, corruption and political unrest. The company’s territorial scale mobilization through logistics networks, energy development, and corporate alliances are strategies sought to supported the building of empire. This con- reduce corporate exposure while leaving unchecked the ecological and social risks of their own creation. 7KHVLJQL¿FDQWODQGXVHWUDQVIRUPDWLRQVUHVXOWLQJIURPSULPDU\FRPPRGLW\H[WUDFWLRQKDYHFRPHDWJUHDWHQYLURQPHQWDOFRVWLQVFULELQJWKHODQGDQGDWPR- sphere surrounding these sites. Soils around Norilsk have elevated levels of copper and nickel concentrations within a 60-kilometer radius of the city. Severe tinues as the interests of an intricate network deforestation surrounds Norilsk; notably there are not any living trees within 50-kilometers of the smelter, mainly due to acid rain. The high level of minerals in the soil has lowered the freezing temperature of the groundwater, resulting in land subsidence due to accelerated permafrost thaw. With climate change, a similar but larger scale effect will result, taxing existing infrastructure and buildings. An added concern is the potential to further these effects, as carbon of corporate power capitalizes and re-articu- sequestered in permafrost soils will be released as greenhouse gases once the soil thaws. The critique of the corporate urbanization project is its drive for unabated development stemming from the corporation’s own need for self-preservation lates prior rounds of industrialization. through capital accumulation, without regard for degradation of the environment, health and societal well-being To Transit Warehouse in United States SALES OFFICE IN PITTSBURGH Messoyakhskoye Gas Field Operations Commenced May 18: Norilsk-Taimyr Energy Company Established Finished 1975, Ust-Khantaiskoe Reservoir To Transit Warehouses in Asia SALES OFFICES IN SHANGHAI AND HONG KONGG Yuzhno-Soleninskoye Gas Condensate Field Operations Commenced Kureiskaya Hydroelectric Power Station Purchased by Norilsk Nickel Norilsk Nickel Europe Ltd. Ust-Khantaiskaya Hydroelectric Power Station Ust-Khantaiskaya Hydroelectric Power Station Purchased by Norilsk Nickel LONDONONDO Severo-Soleninskoye Gas Condensate Field Operations Commenced August 5: Pelyatkinskoye Gas Concentrate Field Developed Energy Norilsk Nickel Logistics B.V.. 1920 ROTTERDAMTERDA 1940 1960 1970 1975 1980 1983 1997 2000 2005 2006 2020 1966 1935 1945 1987 2000 2009 2014 Original Norilsk Airport Built, Dudinka Railway Construction Begins Later Demolished and Relocated Alykel Airport Commences Operations Norilsk Nickel Acquires Controlling Stake in Yenisei River Shipping Co. Norilsk Nickel launches fleet of icebreaking shipping vessels Norilsk Nickel buys stake in Yenisei River Shipping Company Metal Trade Norilsk Nickel OverseasOverseas AG Kola MMC ZUZUGG Murmansk Seaport May 2007 Norilsk Nickel 50,000 USD/mt Harjavalta Oy Logistics Gipronickel Institute ST. PETERSBURG Arkhangelsk Seaport and Transit Warehouse 2878km March 2009 Dudinka Seaport Norilsk Nickel Polar Division Nickel Commodity Price, 1987-2016 NORILSK MOSCOW 1 USD / 1 Russian Ruble NIZHNY NOVOGOROD RezhnickelR Serov Nickel Deposit Russian Ruble Exchange Rate, 1993-2016 SAMARA Nikolay Urvantsev, geologist, discovers coal and nickel ore deposits on the Taimyr Peninsula YEKATERINBURG Lipovskii Field Reserves Exhausted Norilsk Nickel spins off gold-mining assets: Polyus Gold Created Ufaleynickel, First Nickel Extraction UFA Ufaleynickel Completed 2013, Norilsk Nickel Bugdainskoye Exploration Site Developed Plant and Mine in Russia Ongoing, Norilsk Nickel Extraction Exploration Site: Maslovskoye Deposit Refinery 1500km Zapolyarye Heatlh Resort Amur Minerals Kun-Manie Project SOCHI Talnakh Deposit Area Developed Ongoing, Norilsk Nickel Extraction Area Exploration Site: Syradasaiskaya Deposit Severonickel Combine is built in Monchegorsk Lesosibisrk March 1: First Copper-Nickel Matte Produced River Port Norilsk Nickel Extraction Exploration Site: Talnakh Ore Field March 10: First High Grade Matte Produced KRASNOYARSK Nadezhda Metallurgical Plant 1965: World's Largest and Talnakh Enrichment Plant Ongoing, Norilsk Nickel Extraction Exploration Sites: Pechenganickel Mining and Metallurgical Combine built Nickel-Copper-Sulfide Ore Phase 1 Commences Operations Bystrinskoye & Bystrinsko-Shirinskoye [Cu-Fe-Au] Developed by Inco in formerly Finnish Territory Deposit Discovered Oktyabrsky and TOLMACHEVO Krasnoyarsky First Converter Matte Produced Taimyrsky Mines Talnakh Concentrator Upgrade, First Stage RiverR Port Extraction Commissioned 1919-1926 2006 2008 2009 2015 1962 1965 1973-1988 1981 1930 1934 1935 1939 1940 1942 1950 1970 1990 1993 2010 ABAKANA 2001 2004 2006 2012 2014 1922 1935 1953 1956 1989 1993 1995 1997 Bugdainskoye Molybdenum Project is put on hold for 1938-1941 three years due to low market prices Zapolyarye Health Resort Built Norilsk Nickel Renovations to Zapolyarye Health Resort Chita Project July 1: MMC Norilsk Nickel holds 99.999% of shares ADR Authorization increased to max. 40% of shares June: The Bank of New York Mellon issues ADR shares for MMC Norilsk Nickel USSR Established Norilsk Founded August 5: Swift Acquires Controlling Shares November: Uneximbank became holder of RAO Norilsk Nickel June 30: State Concern for Non-Ferrous Metal Production + Politics USSR Council Resolution on Building the Norilsk Combine Norilsk Granted City Status Norilsk Nickel Becomes Joint-Stock Company (RAO) Corporate November 4: Resolution State Concern for Non-Ferrous Metals Production Norilsk Nickel N Hernán Bianchi Benguria + Amanda Miller OPERATIONAL LANDSCAPE OF SIBERIAN NICKEL Urban Theory Lab: Operational Landscapes of Planetary Urbanization Kara Sea Evraz Plc. Gazprom 1RULOVN1LFNHO¶VLQWHUQDOGLYHUVL¿FDWLRQVWUDWHJ\FDQEHGHVFULEHGDVWKHWHUULWRULDOL]DWLRQRIWKHFRUSRUDWLRQ7RRYHUFRPHWKHGLVDGYDQWDJHVRI¿[HGUHVRXUFH STEEL H[WUDFWLRQHFRQRPLHVWKHLUVHOIVHUYLQJFRUSRUDWHSURMHFWPDQLIHVWVLQHQHUJ\LQGHSHQGHQFHWKURXJKWKHLURZQJDV¿HOGVDQGK\GURHOHFWULFGDPVDQGWKHLU SOLD ASSETS RZQORJLVWLFVLQIUDVWUXFWXUHZKLFKLQFOXGHVDQLFHEUHDNHUFDUJRÀHHWDLUOLQHDQGUDLO$OOLDQFHVZLWKRWKHUSULYDWHLQGXVWULDOFRQJORPHUDWHVUHLQIRUFHWKLVFRU- ROMAN Chelsea porate machinery along shared interests in logistics, trade, banking, plus complementary production ventures such as steel, and even media. Operating on a ALEXANDR ABRAMOVICH Football Club SOLD ASSETS JOREDOPDUNHW1RULOVN1LFNHOKDVWDNHQDGYDQWDJHRIYDULRXVIRUPVRIHFRQRPLFH[FKDQJHZLWKLQDQGEH\RQGWKHWHUULWRU\FDSLWDOL]LQJRQ¿VFDODGYDQWDJHV ABRAMOV in the international resource trade and labor costs within its borders. Their worldwide view connects nickel as not only a base commodity of extraction, but NORILSK part of a larger network, dominated by transnational corporate power. ALEXANDR Millhouse Russian FROLOV Aluminum SOLD NN 6% STOCK PART. MERGER FINLAND TOTAL RUSSIAN NORILSK OLEG NICKEL EXPORTS NICKEL Crispian DERIPASKA Sual RUSAL Boardmember Kola MMC RUSSIA $3.7B Investments Ltd. President NN Partners Ltd. Harjavalta 9% ALISHER PART. MERGER USMANOV Polar Division EN+ 15.8% 34% Glencore 13% ENERGY 48% Yenisei R. NORWAY Chita Project Metalloinvest 6% JAPAN 17% Onexim Polyus STEEL RUSAL Holdings Ltd. Nikkeverk CHINA Isoura Plant Gold 3% SOLD NN STOCK [2008] U.K. SOUTH KOREA Permafrost Boundary Nihama Plant SPUN OFF ASSETS [2005] MIKHAIL 24% Harima Plant 28% PROKHOROV CANADA PHILIPPINES OTHER: Highland Fund Templeton > 1% Fraser Mine INVESTMENT Citibank, China 3% GROUP, CHINA T. Rowe Price Raglan Mine Coral Bay POLYUS GOLD J.P. Morgan, UK NORILSK VLADIMIR 30% Interros Onaping Depth Feasibility Study Taganito POTANIN Yenisei River Interros President Sudbury NICKEL CEO NN INDONESIA LESOSIBIRSK Angara R. Shipping Co. NN HOLDS 84% OF FORMER GOV’T ASSET Sudbury BYSTRINKSY $100M INVESTMENT, Metal + Mining 6 ASSETS TANZANIA Air Transport Joint Ownership 20/60 50% FUNDED Soroako Mine IN CHITA Sales 6 ASSETS Kabanga Feasibility Study Exploration TOLMACHEVO KRASNOYARSK Gipronickel BRAZIL 10 ASSETS RUSAL Institute FIRST DEPUTY PRIME MINISTER OF THE RUSSIAN FEDERATION, 1996-1997 NEW CALEDONIA RUSAL Fuel + Energy JSC Norilsk Nickel 5 ASSETS PRESIDENT OF UNEXIMBANK, FORMER 1997 Onça Puma ABAKAN AUSTRALIA Logistics Koniambo Mine 13 ASSETS Research 3 ASSETS Nickel West Mine NORILSK NICKEL is traded State Concern for on the MICEX-RTS and by Misc. Non-Ferrous 5 ASSETS ADR in the United States, Metals Production UK and Germany Murrin Murrin Mine Nornickel November 4, 1989 To Murmansk and Rotterdam Kara Sea Yuzhno-Soleninskoye Gas Condensate Field Severo-Soleninskoye Gas Condensate Field Messoyakhskoye Gas Field Pelyatkinskoye Gas Concentrate Field Energy Export Gas Condensate Pipeline Petroleum Gas Condensate Pipeline Dudinka Seaport Alykel Airport Valek Heliport / Hydroport Logistics Local Road Network Local Cargo Railway Kayerkan Town Norilsk City Human Settlements Yenisei River Oganer Hospital Talnakh City Nadezhda Metallurgical Plant Copper